Reward Programs Integrated with the Strategic Plan
Situation:
The health care unit of a top insurance
company wanted to assess how well its human resources programs supported
its long-term business strategy to become a dominant leader in the
HMO and Preferred Provider Network industry. Like many of its competitors,
healthcare was just one of the lines of business of this multiline
insurer. The healthcare business heads were convinced that they needed
to modify the "cookie cutter" human resources programs
that were in place across all of the company's lines of business.
Process
The D.G. McDermott Associates team interviewed
the top 15 executives of the healthcare business in order to understand
the unit's strengths and weaknesses, its competitive advantage(s),
specific three- and five-year business goals, the underlying assumptions
driving those goals, and the human capital requirements for making
the long-range plans attainable.
Solution
The D.G. McDermott Associates team delivered
a comprehensive report that included: an overview of the health care
industry citing trends, key operating assumptions and critical success
factors; an overview of each of the key functional areas vis-a-vis
the industry trend and analysis of each of their human resources
capabilities to achieve stated business objectives; and an analysis
of the current human resources programs, especially compensation
design and practices that were no longer relevant.
Outcome
The
client sought and received approval for modifications to the
corporate human resources polices and submitted and received
approval for a customized compensation program that tied current
and future strategic performance criteria into a new reward system
that incorporated incentives.
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